Generally people that are in debt avidly seek out every way that they can correct this problem and regain their financial independence. These days one of the only ways to get out of debt is to file a bankruptcy. A chapter 13 bankruptcy attorney can assist you with the process of filing for this particular bankruptcy chapter and explain all of the provisions that you must meet in order to be able to do so.
You have two different choices that you will need to make when it comes to filing for a bankruptcy. There are only two chapters there is the chapter 7 bankruptcy and the wage earners bankruptcy that is also referred to as a chapter 13 bankruptcy. This type of plan is referred to as such because the debtor will have to agree to repay a certain amount of their debts back to their creditors over a pre-decided amount of time.
Your debt will not be eliminated until you, your attorney and your creditors have decided upon a payment plan that suits all parties. The plan will normally last for three to five years and after the amount of funds agreed upon has been paid back in full, only then will you be able to consider yourself a debt free individual.
The way this plan works is actually quiet simple. You will be required to choose a repayment plan that works best for you. Generally, individuals opt to obtain a plan that they can afford, there is no need to try to overpay for your debts since this type of plan is made to allow you to pay a fair share of the money that you owe back typically over the course of three to five years.
One of the main reasons why so many people are anxious to file this particular type of bankruptcy is because with doing so they are able to cease any foreclosures from taking place on their property. This means that the debtor will not have to worry about their homes being taken from underneath them, because they are making the right steps to get their debts rectified with haste.
In order to be able to qualify for one of these types of plans there is a certain list of criterion that an individual must meet. First of all, an individual cannot have more than $336,900 in unsecured debt and their secured debt cannot exceed $1,010,650. These provisions must be met before an individual can attempt to apply for this particular chapter of bankruptcy.
Also if the debtor has already been turned down for their bankruptcy claim and 180 days has not passed since they were turned down, they will need to wait until those days have passed before they can attempt to file for this particular plan. Bear in mind that even if you get approved for this plan it is your responsibility to ensure that the payments that you agree upon with your mortgage company are meant in a reasonable time frame.
If you are presently not generating a positive amount of income, then you will not be able to file for this type of bankruptcy. Since you are agreeing to pay your debts back, only people that have the money available to do so will be approved for a chapter 13 bankruptcy.
Hiring a lawyer to assist you with the filing process and the negotiation process will help you get a lower repayment amount that you will be required to render to your creditors. However, it is still your responsibility to ensure that your creditors receive the amount that you agree upon within a reasonable time frame.
Looking for a way to eliminate debts and rebuild your bright financial future? A Chapter 13 Bankruptcy Lawyer will surely be able to assist. Check out our guide on the best Chapter 13 Bankruptcy Attorney in your region .
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